36822 Federal Register / Vol. 86, No. 131 / Tuesday, July 13, 2021 / Notices 

46 17 CFR 240.17Ad–22(e)(2). 

47 17 CFR 240.17Ad–22(e)(17)(i). 

48 17 CFR 240.17Ad–22(e)(21). 

49 15 U.S.C. 78q–1(b)(3)(I). 

50 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3 15 U.S.C. 78s(b)(3)(A). 

4 17 CFR 240.19b–4(f)(4). 

5Capitalized terms used herein and not defined 

shall have the meanings assigned to such terms in 

the GSD Rules, MBSD Rules and EPN Rules, as 

applicable, available at http://www.dtcc.com/legal/ 

rules-and-procedures.aspx. 

promulgated under the Act,46 (iv) 

improve the ability of NSCC to act 

quickly, efficiently and effectively in the 

event of a Major Event, and mitigate any 

impact from such event by providing 

clear, efficient procedures of NSCC and 

its participants with respect to such 

event, consistent with the requirements 

of Rule 17Ad–22(e)(17)(i) promulgated 

under the Act 47 and (v) establish 

procedures designed to improve NSCC’s 

ability to act quickly, efficiently and 

effectively in the event of a Major Event, 

consistent with the requirements of Rule 

17Ad–22(e)(21) promulgated under the 

Act.48

In addition, NSCC believes that the 

proposed changes to add the Systems 

Disconnect Rule are appropriate in 

furtherance of the Act. Such changes 

have been designed to improve the 

ability of NSCC to act quickly, 

efficiently and effectively in the event of 

a Major Event, and mitigate any impact 

from such event while also providing 

the Members and Limited Members 

clear guidelines with respect to such 

event to allow participants to 

understand their rights and obligations. 

Such changes have also been designed 

to apply uniformly to all Members and 

Limited Members in the event of a 

Major Event and should not affect 

NSCC’s day-to-day operations under 

normal circumstances, or in the 

management of a typical Member or 

Limited Member default scenario or 

non-default event. 

Therefore, NSCC does not believe that 

the proposed rule change would impose 

any burden on competition that is not 

necessary or appropriate in furtherance 

of the purposes of the Act.49

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

NSCC has not received or solicited 

any written comments relating to this 

proposal. NSCC will notify the 

Commission of any written comments 

received by NSCC. 

III. Date of Effectiveness of the 

Proposed Rule Change, and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) By order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

NSCC–2021–007 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–NSCC–2021–007. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of NSCC and on DTCC’s website 

(http://dtcc.com/legal/sec-rulefilings.aspx). All comments received 

will be posted without change. Persons 

submitting comments are cautioned that 

we do not redact or edit personal 

identifying information from comment 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–NSCC– 

2021–007 and should be submitted on 

or before August 3, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.50

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–14791 Filed 7–12–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92340; File No. SR–FICC– 

2021–005] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing and Immediate Effectiveness of 

a Proposed Rule Change To Modify the 

FICC Government Securities Division 

Rulebook, FICC Mortgage-Backed 

Securities Division Clearing Rules, and 

FICC Mortgage-Backed Securities 

Division EPN Rules 

July 7, 2021. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on June 30, 

2021, Fixed Income Clearing 

Corporation (‘‘FICC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change as described in Items I, II and III 

below, which Items have been prepared 

by the clearing agency. FICC filed the 

proposed rule change pursuant to 

Section 19(b)(3)(A) of the Act 3 and Rule 

19b–4(f)(4) thereunder.4 The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

The proposed rule change of FICC 

consists of modifications to the FICC 

Government Securities Division 

(‘‘GSD’’) Rulebook (‘‘GSD Rules’’), the 

FICC Mortgage-Backed Securities 

Division (‘‘MBSD’’) Clearing Rules 

(‘‘MBSD Rules’’) and the FICC MBSD 

EPN Rules (‘‘EPN Rules,’’ and together 

with the GSD Rules and the MBSD 

Rules, the ‘‘Rules’’) 5 in order to (i) 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 131 / Tuesday, July 13, 2021 / Notices 36823 

6 In 2016, the Commission approved FICC’s 

proposed rule change to suspend the interbank 

service of the GCF Repo Service. The GCF Repo 

Service has operated on both an ‘‘interbank’’ and 

‘‘intrabank’’ basis. ‘‘Interbank’’ means that the two 

GCF Repo Participants, which have been matched 

in a GCF Repo transaction, each clear at a different 

clearing bank. See Securities Exchange Act Release 

No. 78206 (June 30, 2016), 81 FR 44388 (July 7, 

2016) (SR–FICC–2016–002). 

‘‘Intrabank’’ means that the two GCF Repo 

Participants, which have been matched in a GCF 

Repo transaction, clear at the same clearing bank. 

FICC does not expect to reinstitute the interbank 

service of the GCF Repo Service at this time and 

removed all references to this service from the GSD 

Rules in 2020. See Securities Exchange Act Release 

No. 88766 (April 29, 2020), 85 FR 26747 (May 5, 

2020) (SR–FICC–2020–005) (‘‘FICC Clean-Up 

Changes Filing’’). 

7Most of the references to the term ‘‘Clearing 

Fund Funds-Only Settlement Amount’’ were 

deleted in the FICC Clean-Up Changes Filing 

because this is an outdated Clearing Fund 

component and should have been deleted when 

GSD moved to a VaR-based Clearing Fund 

methodology. See FICC Clean-up Changes Filing, 

supra note 6. 

correct or clarify the use of certain 

defined terms in the Rules, (ii) make 

certain clarifications and corrections in 

the Rules, and (iii) make certain 

technical changes to the Rules, each as 

described in more detail below. 

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

FICC is proposing to (i) correct the use 

of certain defined terms in the Rules, (ii) 

make certain clarifications and 

corrections in the Rules, and (iii) make 

certain technical changes to the Rules, 

each as described in more detail below. 

(i) Proposal To Correct or Clarify the 

Use of Certain Defined Terms in the 

Rules 

A. Proposal To Delete Terms That Are 

no Longer Used in the Rules 

FICC is proposing to remove the 

following defined terms and related 

descriptions, as applicable, in the Rules: 

• ‘‘GCF Securities Account’’ in GSD 

Rule 1 and the phrase ‘‘and for which 

the Corporation establishes a GCF 

Securities Account’’ in the defined term 

‘‘GCF Clearing Agent Bank’’ in GSD 

Rule 1 because these provisions relate to 

the interbank service of the GCF Repo 

Service, which FICC does not expect to 

reinstitute.6

• ‘‘and Clearing Fund Funds-Only 

Settlement Amount’’ in the defined term 

‘‘Opening Balance’’ in GSD Rule 1 

because ‘‘Clearing Fund Funds-Only 

Settlement Amount’’ is no longer a 

defined term in the GSD Rules.7

• the defined term ‘‘Direct 

Transaction’’ in MBSD Rule 1 because 

this defined term is no longer used in 

the MBSD Rules (it was used in a 

previous version of the rules relating to 

loss allocation). 

• the defined term ‘‘Eligible Letter of 

Credit’’ in MBSD Rule 1 because this 

defined term is no longer used in the 

MBSD Rules (it is no longer a required 

form of Clearing Fund). 

• the defined term ‘‘TBA 

Comparison’’ from MBSD Rule 1 

because this defined term is not used in 

the MSBD Rules and is also duplicative 

(it has the same definition as the 

defined term ‘‘Trade Comparison’’). 

• the defined term ‘‘GCF Collateral 

Excess Account’’ in MBSD Rule 1 

because this is a typographical error and 

was inadvertently included in the 

MBSD Rules. GCF Collateral Excess 

Account is only relevant to the GSD 

Rules, not the MBSD Rules. 

B. Proposal To Revise References To 

Reflect the Existing Defined Terms and 

Related Changes 

FICC is proposing to capitalize 

references to the following words to 

reflect the existing defined terms in 

their respective Rules: 

• ‘‘registered clearing agencies’’ in 

GSD Rule 36 and EPN Article V, Rule 

10 

• ‘‘clearing agency’’ in EPN Article V, 

Rule 14 

As described above, because FICC is 

proposing to capitalize the references to 

registered clearing agencies and clearing 

agencies in the EPN Rules in order to be 

consistent with the GSD Rules and 

MSBD Rules, FICC is also proposing to 

add the defined terms ‘‘Registered 

Clearing Agency’’ and ‘‘Clearing Agency 

to EPN Article I, Rule 1 to enhance 

clarity. 

FICC is also proposing to revise 

‘‘Securities and Exchange Commission’’ 

to ‘‘SEC’’ in GSD Rule 36 to reflect the 

existing defined term. 

In addition, FICC is proposing to add 

‘‘EPN’’ before the references to ‘‘Rules’’ 

in EPN Article V, Rule 10 to reflect the 

existing defined term. 

C. Proposal To Revise Capitalized Terms 

To Reflect That They Are Not Defined 

Terms 

FICC is proposing to revise the 

references from ‘‘Website’’ to ‘‘website’’ 

in Section 2 of GSD Rule 3 because 

‘‘Website’’ is not a defined term. 

(ii) Proposal To Make Certain 

Clarifications and Corrections in the 

Rules 

A. Remove Certain Categories Where 

There Is no Charge 

Certain categories are included in the 

FICC MSBD Schedule of Charges Broker 

Account Group (‘‘Broker Schedule of 

Charges’’) and the FICC MSBD Schedule 

of Charges Dealer Account Group 

(‘‘Dealer Schedule of Charges’’) of the 

MBSD Rules and the FICC MSBD EPN 

Schedule of Charges in the EPN Rules 

even though there are no charges 

associated with those categories. 

As such, for simplicity and to 

enhance clarity, FICC is proposing to 

remove the category entitled ‘‘DK and 

Modify’’ from the subsection entitled 

‘‘Trade Processing’’ under Section 1 of 

the Broker Schedule of Charges of the 

MBSD Rules. 

FICC is also proposing to remove the 

category entitled ‘‘DK and Modify’’ from 

the subsections entitled (a) ‘‘Trade 

Processing,’’ (b) ‘‘Trade-for-Trade 

Transactions, Specified Pool Trades, 

and Stipulated Trades,’’ and (c) ‘‘Option 

Trades’’ under Section I of the Dealer 

Schedule of Charges of the MBSD Rules. 

In addition, FICC is also proposing to 

remove certain categories from the 

sections entitled ‘‘Message Processing 

Fees’’ and ‘‘Pool Substitution Cancel/ 

Correct’’ in the FICC MSBD EPN 

Schedule of Charges. Specifically, FICC 

proposes to remove the following 

categories: 

• ‘‘DK Send or Receive:’’ 

• ‘‘Cancel Send or Receive:’’ 

• ‘‘Retransmission Request:’’ 

• ‘‘Cancel/Correct Receive:’’ 

• ‘‘Cancel/Correct DK Send or 

Receive:’’ 

• ‘‘Cancel/Correct Retransmission 

Request:’’ 

B. Clarify the Rules Related to 

Notification of Rule Changes 

In order to be consistent with similar 

provisions in the GSD Rules and the 

EPN Rules and to enhance clarity, FICC 

is also proposing to add ‘‘and Registered 

Clearing Agencies’’ to MBSD Rule 27. 

FICC believes this proposed change 

would clarify that FICC shall promptly 

notify Registered Clearing Agencies in 

addition to Members of any proposal to 

change, revise, add, or repeal any Rule. 

In addition, currently, GSD Rule 36 

states that FICC would notify all 


jbell on DSKJLSW7X2PROD with NOTICES
36824 Federal Register / Vol. 86, No. 131 / Tuesday, July 13, 2021 / Notices 

8 15 U.S.C. 78q–1. 

9 15 U.S.C. 78s. 

10 12 U.S.C. 5465(e)(1). 

11This process is set forth in Section 19(b) of the 

Act and Rule 19b–4 thereunder. 15 U.S.C. 78s(b) 

and 17 CFR 240.19b–4. 

12This process is set forth in Section 806(e) of 

Dodd-Frank and Rule 19b–4 thereunder. 12 U.S.C. 

5465(e) and 17 CFR 240.19b–4. 

13 17 CFR 240.19b–4(l). 

14 17 CFR 240.19b–4(m)(2). 15 Id. 

Members and registered clearing 

agencies of any rule change proposals, 

and MBSD Rule 27 states that FICC 

would notify all Members of any rule 

change proposals. Similarly, EPN 

Article V, Rule 10 states that FICC 

would notify all EPN Users and 

registered clearing agencies of any rule 

change proposals by posting the 

proposal on the FICC website. 

As a clearing agency registered with 

the Commission, the Act provides a 

clear framework under which FICC’s 

Rules are adopted and enforced. Under 

the rule change process, generally, 

before a proposed rule change may take 

effect, (i) the change and an explanatory 

statement must be filed with the 

Commission and posted by FICC on the 

FICC website, (ii) notice of the filing and 

the substantive terms or description of 

the change must be published by the 

Commission in the Federal Register for 

public review and comment, and (iii) 

the Commission must approve the 

change (or the change must otherwise be 

permitted to take effect). FICC’s Rules 

are filed with and reviewed by the 

Commission. As a clearing agency 

registered under Section 17A of the 

Act,8 a self-regulatory organization 

subject to Section 19 of the Act,9 and a 

systemically important financial market 

utility under Title VIII of Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act of 2010 (‘‘DoddFrank’’),10 FICC is required to follow: 

(1) A specified process 11 whenever it 

proposes a new rule or a change or 

amendment to its Rules and (2) a 

specified process 12 whenever it 

proposes to make a change to its rules, 

procedures or operations that could 

materially affect the nature or level of 

risks presented by FICC. 

These rule change processes provide 

notice to Members and provide an 

opportunity for those parties to 

comment on such changes. Rule 19b–4 

under the Act requires that FICC post 

any rule change proposals on its website 

within two business days after the filing 

of a proposed rule change,13 post any 

rule changes that are approved by the 

Commission within two business days 

after it has been notified of the 

Commission’s approval 14 and post any 

rule change within two business days of 

the Commission’s notice of such 

proposed change for rule changes that 

are effective upon filing.15 FICC 

complies—and will continue to 

comply—with such notice requirements 

which it believes are adequate. 

C. Clarify Certain Provisions Regarding 

Notice to Interested Persons in the Rules 

FICC is proposing to revise certain 

provisions regarding notice to Interested 

Persons in GSD Rule 45, MBSD Rule 35 

and EPN Article V, Rule 16. 

Specifically, in the second paragraph of 

Section 1 of GSD Rule 45, second 

paragraph of MSBD Rule 35, and EPN 

Article V, Rule 16, FICC proposes to 

revise ‘‘delivered’’ to ‘‘sufficiently 

served,’’ so the provision would state 

that FICC would deem a notice 

sufficiently served once such notice is 

posted to the website to be consistent 

with the other provisions in the first 

paragraph of Section 1 and Section 2 of 

GSD Rule 45, the first paragraph of 

Section 1 and Section 2 of MBSD Rule 

35, and the first paragraph of EPN 

Article V, Rule 16. 

FICC would also revise GSD Rule 45, 

MBSD Rule 35, and EPN Article V, Rule 

16 to state that it is the responsibility of 

the Interested Persons to retrieve notices 

daily from FICC’s website. 

FICC would also add a provision to 

EPN Article V, Rule 16 to state that any 

notice from an Interested Person to FICC 

shall be sufficiently served on FICC if 

the notice is in writing and is delivered, 

mailed, or transmitted by facsimile 

machine to FICC at its principal place 

of business, Attention: Secretary, or 

such other place as FICC designates in 

order to be consistent with Section 2 of 

GSD Rule 45 and Section 2 of MBSD 

Rule 35. This new provision would also 

state that any such notice to FICC shall 

be deemed to have been given when 

received. 

D. Remove Certain Redundant or 

Unnecessary Provisions for Clarity 

FICC is proposing to remove the 

second paragraph in GSD Rule 2A, 

Section 3 that states that FICC shall 

retain the right to deny membership to 

an applicant if FICC becomes aware of 

any factor or circumstance about the 

applicant or its Controlling Management 

which may impact the suitability of that 

particular applicant as a Member of 

FICC because it is redundant. 

In addition, FICC proposes to remove 

‘‘or any Committee thereof’’ from GSD 

Rule 47 and MBSD Rule 37 because it 

is redundant. In addition, FICC 

proposes to remove ‘‘, or any committee 

of the Board,’’ in EPN Article V, Rule 1 

because it is also redundant. The 

definition of ‘‘Board of Directors’’ 

currently includes committees. 

Furthermore, for simplicity and 

because it is unnecessary, FICC 

proposes to remove the word ‘‘all’’ 

before ‘‘EPN Users’’ in EPN Article V, 

Rule 10. 

E. Clarify the Provision Relating to a 

Special Charge in the GSD Rules 

The fourth paragraph in Section 1b(a) 

of GSD Rule 4 describes a special 

charge. FICC is proposing to revise the 

phrase ‘‘additional amount’’ to 

‘‘additional payment’’ in this paragraph. 

To enhance transparency and clarity, 

FICC would also revise the provision to 

state that FICC may charge (and not just 

calculate) an additional payment (a 

‘‘special charge’’) applicable to a Margin 

Portfolio as determined by FICC from 

time to time in view of market 

conditions and other financial and 

operational capabilities of the Member, 

and FICC would make any such 

determination based on such factors as 

FICC determines to be appropriate from 

time to time. This revised provision 

would be moved from the fourth 

paragraph to a new subsection (viii) in 

Section 1b(a) of GSD Rule 4 preceded by 

the word ‘‘plus.’’ 

F. Certain Clarifications and Corrections 

to GSD Rule 22C 

FICC is proposing to make certain 

clarifications to GSD Rule 22C which 

describes FICC’s interpretation in 

relation to the Federal Deposit 

Insurance Corporation Improvement Act 

of 1991 (‘‘FDICIA’’). 

FICC proposes to correct the title of 

GSD Rule 22C by adding the word 

‘‘Improvement’’ after ‘‘Corporation.’’ 

FICC would revise ‘‘Netting 

Members’’ to ‘‘Members’’ in GSD Rule 

22C to clarify that the transactions of 

Members other than Netting Members 

may be Novated to FICC. Such Members 

may therefore have net claims against 

FICC under the GSD Rules, and FICC 

may have net claims against such 

Members under the GSD Rules. In each 

such case, both the Members and FICC 

intend FDICIA’s clearing organization 

netting provisions to apply. 

In addition, FICC is proposing to add 

‘‘or used’’ after ‘‘defined’’ in GSD Rule 

22C to clarify that some terms discussed 

in GSD Rule 22C are used in FDICIA but 

either are not defined at all or not 

defined in FDICIA. 

FICC is also proposing to add ‘‘or 

delivery’’ in the third and fourth 

paragraph since the term ‘‘payment’’ as 

used in FDICIA includes a ‘‘noncash 


jbell on DSKJLSW7X2PROD with NOTICES
Federal Register / Vol. 86, No. 131 / Tuesday, July 13, 2021 / Notices 36825 

16See 12 U.S.C. 4402(15). 

payment,’’ 16 and it is FICC’s and each 

Member’s intent that both the cash 

payment and security delivery 

entitlements and obligations of FICC 

and each Member be subject to FDICIA’s 

clearing organization netting provisions. 

FICC is also proposing to add ‘‘and 

each Cross-Margining Arrangement and 

associated agreement and guaranty’’ in 

the last paragraph of GSD Rule 22C to 

clarify the intent of FICC and each 

Member that the Cross-Margining 

Arrangements and associated 

agreements and guaranties are within 

the scope of Section 404(h) of FDICIA 

and therefore subject to its protections 

for ‘‘any security agreement or 

arrangement or other credit 

enhancement related to one or more 

netting contracts’’ between clearing 

organization members. 

FICC would correct references to this 

Rule 22C. Specifically, FICC would 

revise references from ‘‘this Rule 22C’’ 

to ‘‘Rule 22B’’ because Rule 22B (not 

Rule 22C) provides for the exercise of 

netting and close-out rights that FICC 

and its Members intend to be within the 

scope of FDICIA’s protections. 

FICC is also proposing to remove the 

reference to GSD to reflect the fact that 

FICC, not GSD, is a ‘‘clearing 

organization’’ within the meaning of 

FDICIA. 

FICC would also revise the last 

sentence in GSD Rule 22C to clarify that 

the netting provided for under Rules 

22A and 22B falls within the scope of 

the general netting protections of 

Section 404(a) of FDICIA. 

G. Other Clarifications and Corrections 

to the MBSD Rules 

To enhance transparency, FICC is 

proposing to clarify the defined term 

‘‘Settlement Price’’ in MBSD Rule 1 to 

add a case that occurs in current 

practice. Specifically, FICC proposes to 

revise subsection (b) to add unallocated 

TBAs that go through the process for 

determining the TBA Reprice 

Transaction Adjustment Payment. 

FICC is also proposing correct the 

defined term ‘‘Settlement Value’’ in 

MBSD Rule 1 to reflect current practice 

by (i) removing the references to a 

Trade-for-Trade Transaction, an SBODestined Trade, a Stipulated Trade, and 

a SBON Trade because only Pool 

Deliver Obligations, Pool Receive 

Obligations, and Specified Pool Trades 

include interest, and (ii) adding a new 

paragraph for Trade-for-Trade 

Transactions, an SBO-Destined Trade, a 

Stipulated Trade, and an SBON Trade 

that would state that with respect to 

these types of trades, Settlement Value 

would mean the amount in dollars equal 

to the Par Amount of each Eligible 

Security that comprises these trades 

multiplied by the Settlement Price. 

FICC is also proposing to add ‘‘and 

SBON Trades’’ to the definition of ‘‘TBA 

Obligations’’ and remove ‘‘, with respect 

to’’ and ‘‘settlement obligations 

generated by the Trade Comparison 

System’’ in MSBD Rule 1 to correct an 

omission and reflect current practice. 

FICC would also clarify that the term 

settlement date in MSBD Rule 8, Section 

2B refers to the SIFMA settlement date 

because the Expanded Pool Netting 

process only occurs four times a month 

(during the SIFMA settlement cycle). 

In addition, FICC is proposing to add 

the phrase ‘‘for purposes of this Rule 8, 

hereinafter referred to’’ before the 

defined term ‘‘ExP Day’’ in MSBD Rule 

8, Section 2B to enhance clarity. 

FICC would also add the following 

cash-only settlement amounts 

‘‘Miscellaneous Adjustment Amount 

from TBA Clearing (MIS),’’ 

‘‘Miscellaneous Adjustment Amount 

from Pool Netting (MSC),’’ and 

‘‘Miscellaneous Adjustment from EPN 

(MSE)’’ to MSBD Rule 11, Section 7. 

MSBD Rule 11, Section 7 describes the 

computation of the Cash Balance for 

each applicable account. Furthermore, 

FICC would add the defined term 

‘‘Miscellaneous Adjustment Amount’’ to 

MSBD Rule 1, and such definition 

would be consistent with the definition 

for the same term in the GSD Rules. 

FICC is proposing to add ‘‘Date’’ after 

‘‘Trade’’ under Processing Fees of 

Section I of the Broker Schedule of 

Charges and under Processing Fees of 

Section I of the Dealer Schedule of 

Charges to enhance clarity. 

H. Other Clarifications and Corrections 

to the EPN Rules 

To enhance clarity and to be 

consistent with GSD Rule 44 and MBSD 

Rule 34, FICC is proposing to revise 

EPN Article V, Rule 1. Currently, EPN 

Article V, Rule 1 states that except 

where action by the Board of Directors, 

or any committee of the Board, is 

specifically required by the By-Laws or 

the EPN Rules, FICC may act by its 

President, any Managing Director or any 

Executive Director or by such person, as 

may be designated from time to time by 

the Board of Directors. FICC proposes to 

revise EPN Article V, Rule 1 to state that 

where action by the Board of Directors 

is required by the EPN Rules, FICC may 

act, to the fullest extent permitted by 

law, by the Chairman of the Board, by 

its President, any Managing Director or 

any Executive Director or by such 

person or persons, whether or not 

employed by FICC, as may be 

designated from time to time by the 

Board of Directors. 

FICC also proposes to correct EPN 

Article II, Rule 2, Section 3. 

Specifically, FICC proposes to revise 

that the Message Summary Report lists 

the summary totals of each message type 

by EPN Eligible Security and 

Participant. This report lists the 

summary totals of each message type 

(not list the contents of each message). 

FICC also proposes to clarify EPN 

Article III, Rule 1, Section 2 by 

removing subsection (a) because FICC 

does not review an applicant’s financial 

ability, and FICC does not collect 

financials for EPN Users. 

To enhance clarity, FICC proposes to 

revise the reference from ‘‘Greater than 

10 accounts’’ to ‘‘11 Accounts and over’’ 

under the section entitled ‘‘Account 

Maintenance Fees’’ in the FICC MSBD 

EPN Schedule of Charges. 

(iii) Proposal To Make Certain Technical 

Changes in the Rules 

FICC is proposing to make the 

following technical changes in the Rules 

to enhance the clarity and readability of 

the Rules: 

A. Grammar-Related Technical Changes 

FICC is proposing to make certain 

grammar-related technical changes. 

FICC is proposing to make a conforming 

grammatical change in the final 

paragraph of GSD Rule 22C to change 

‘‘relating’’ to ‘‘related.’’ FICC is also 

proposing to revise ‘‘payments’’ to 

‘‘payment’’ as a conforming grammatical 

change in GSD Rule 22C. FICC would 

also remove the word ‘‘which’’ in GSD 

Rule 11B, Section (a) to make a 

grammatical correction. FICC would add 

the word ‘‘or’’ as a grammatical 

correction in the definition of 

‘‘Settlement Value’’ in MSBD Rule 1. 

FICC is also proposing to make a 

conforming grammatical change to 

remove the comma in the definition of 

‘‘TBA Obligations’’ in MBSD Rule 1. 

B. Correct Typographical Errors 

FICC is proposing to revise ‘‘An’’ to 

‘‘Any’’ to correct a typographical error 

in the fourth paragraph of GSD Rule 

22C. 

C. Other Technical Changes 

FICC is also proposing to make the 

technical changes described below. 

• conform the use of dashes in 

Section 2 of GSD Rule 38 and Section 

2 of MBSD Rule 29. 

• revise the comma to a semi-colon in 

the last paragraph of GSD Rule 22C. 

• add a comma in the last sentence of 

GSD Rule 22C, in the defined term 

‘‘Clearing System’’ in MBSD Rule 1. 


jbell on DSKJLSW7X2PROD with NOTICES
36826 Federal Register / Vol. 86, No. 131 / Tuesday, July 13, 2021 / Notices 

17 15 U.S.C. 78q–1(b)(3)(F). 

18 Id. 

19 15 U.S.C. 78s(b)(3)(A). 

20 17 CFR 240.19b–4(f). 

21 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3See Securities Exchange Act Release No. 91962 

(May 21, 2021), 86 FR 28646 (May 27, 2021). 

• add a hyphen between ‘‘the’’ and 

‘‘Market’’ in the defined term ‘‘Off-the 

Market Transaction’’ in MBSD Rule 1. 

• correct a section reference in MSBD 

Rule 11, Section 7(l) by revising the 

reference from Section 6 to Section 10. 

• make conforming changes to MBSD 

Rule 11, Section 7 to replace the comma 

with a semi-colon and add plus or 

minus after the items described in 

subsections (o), (p), and (q). 

• make a conforming change to EPN 

Article III, Rule 1, Section 2 by revising 

subsections (b) and (c) to subsections (a) 

and (b), respectively because FICC is 

proposing to remove subsection (a), as 

described above. 

2. Statutory Basis 

Section 17A(b)(3)(F) of the Act 

requires, in part, that the Rules be 

designed to promote the prompt and 

accurate clearance and settlement of 

securities transactions.17

The proposed changes to (i) correct or 

clarify the use of certain defined terms 

in the Rules, (ii) make certain 

clarifications and corrections in the 

Rules, and (iii) make certain technical 

changes to the Rules would help to 

ensure that the Rules are accurate and 

clear to participants. When participants 

better understand their rights and 

obligations regarding the Rules, such 

participants are more likely to act in 

accordance with the Rules, which FICC 

believes would promote the prompt and 

accurate clearance and settlement of 

securities transactions. As such, FICC 

believes that the proposed changes 

would be consistent with Section 

17A(b)(3)(F) of the Act.18

(B) Clearing Agency’s Statement on 

Burden on Competition 

FICC does not believe the proposed 

rule changes to (i) correct or clarify the 

use of certain defined terms in the 

Rules, (ii) make certain clarifications 

and corrections in the Rules, and (iii) 

make certain technical changes to the 

Rules would impact competition. The 

proposed rule changes would help to 

ensure that the Rules remain clear and 

accurate. In addition, the changes would 

facilitate participants’ understanding of 

the Rules and their obligations 

thereunder. These changes would not 

affect FICC’s operations or the rights 

and obligations of the membership. As 

such, FICC believes the proposed rule 

changes would not have any impact on 

competition. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants, or Others 

FICC has not received or solicited any 

written comments relating to this 

proposal. FICC will notify the 

Commission of any written comments 

received by FICC. 

III. Date of Effectiveness of the 

Proposed Rule Change, and Timing for 

Commission Action 

The foregoing rule change has become 

effective pursuant to Section 

19(b)(3)(A) 19 of the Act and paragraph 

(f) 20 of Rule 19b–4 thereunder. At any 

time within 60 days of the filing of the 

proposed rule change, the Commission 

summarily may temporarily suspend 

such rule change if it appears to the 

Commission that such action is 

necessary or appropriate in the public 

interest, for the protection of investors, 

or otherwise in furtherance of the 

purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

FICC–2021–005 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–FICC–2021–005. This file 

number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549 on official 

business days between the hours of 

10:00 a.m. and 3:00 p.m. Copies of the 

filing also will be available for 

inspection and copying at the principal 

office of FICC and on DTCC’s website 

(http://dtcc.com/legal/sec-rulefilings.aspx). All comments received 

will be posted without change. Persons 

submitting comments are cautioned that 

we do not redact or edit personal 

identifying information from comment 

submissions. You should submit only 

information that you wish to make 

available publicly. All submissions 

should refer to File Number SR–FICC– 

2021–005 and should be submitted on 

or before August 3, 2021. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.21

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2021–14802 Filed 7–12–21; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–92333; File No. SR– 

NYSEArca–2021–37] 

Self-Regulatory Organizations; NYSE 

Arca, Inc.; Notice of Designation of a 

Longer Period for Commission Action 

on a Proposed Rule Change To List 

and Trade Shares of the First Trust 

SkyBridge Bitcoin ETF Trust Under 

NYSE Arca Rule 8.201–E 

July 7, 2021. 

On May 6, 2021, NYSE Arca, Inc. 

(‘‘NYSE Arca’’) filed with the Securities 

and Exchange Commission 

(‘‘Commission’’), pursuant to Section 

19(b)(1) of the Securities Exchange Act 

of 1934 (‘‘Act’’) 1 and Rule 19b–4 

thereunder,2 a proposed rule change to 

list and trade shares of the First Trust 

SkyBridge Bitcoin ETF Trust under 

NYSE Arca Rule 8.201–E. The proposed 

rule change was published for comment 

in the Federal Register on May 27, 

2021.3 The Commission has received 


jbell on DSKJLSW7X2PROD with NOTICES